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Millennials are no longer a renter generation

Millennials are no longer a renter generation

 Sep 2015                                
            
By John Tenpenny
According to a recent survey, millennials are no different from previous generations of homebuyers and are a large segment of first-time buyers.
Almost 65 per cent of millennials aged 21 to 34 looked at real estate websites and apps in August, according to a realtor.com analysis of data from comScore and current population estimates.
According to realtor.com chief economist Jonathan Smoke, millennials are undermining their image as a generation of renters.
“People who believe that millennials are disinterested in home ownership are grossly mistaken,” said Smoke. “This generation hit the job market during one of the largest recessions of all time and they’ve had to work hard to establish credit and save for a down payment.
“When we focus on 25-34 year olds we find that this group is 70% more likely than the average adult to be currently looking for a home to buy on realtor.com,” said Smoke.
In August, the market share of first-time buyers of existing homes increased to 32%, from a July rate of 28%, according to National Association of Realtors.
Smoke estimates that half of all home sales activity for the first half of the year can be attributed to first-time buyers and according to the NAR 2015 Home Buyer and Seller Generational Trends report, millennials comprise 68% of all first-time buyers.
“Despite the increased role of millennials in the housing market, setbacks still exist and are preventing first-timers from making even more of an impact,” said Smoke. “As inventory returns to more normal levels, expect the blooming of millennial homebuyers to turn into a boom.”